Elizabeth Warren’s proposals on business organization

Schemes like a government mandate of worker representation on corporate boards (an element of German “co-determination”) are not new, and scholars have studied their track record in Europe for years. In particular, they tend not to provide robust incentives for risk-taking and dynamism; that’s aside from their interference with the contractual liberty of all parties to adopt alternative governance methods agreed to by all parties. I talk with Cato’s Caleb Brown about that and Massachusetts Senator Elizabeth Warren’s other ideas for revamping how large companies are run. Earlier here and here.

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